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REGULAR MEETING August 14, 1972
<br />RESOLUTION NO. 322 -72 - :(CONTINUEDY
<br />WHEREAS, the statement of public service by Koszegi Leather and Vinyl Products, Inc., and the
<br />Economic Development Commission of the City of South Bend have been submitted for approval and
<br />comments to the Area Plan Commission of St. Joseph County and the affirmative action and comments
<br />of the Area Plan Commission have been received by the Clerk of the City of South Bend as
<br />attached, and,
<br />WHEREAS, the requirements of the application as described in the "Municipal Economic Development
<br />Act of 1965 of the State of Indiana" as amended have therefore been met to this point, including
<br />a projection of the number of jobs created, the estimated payroll created and the approximation
<br />of the cost of construction, and the impact on utilities and fire and police facilities of the
<br />City of South Bend, with the approvals of the school corporation and the Area Plan Commission .
<br />having jurisdiction of the area in which the proposed facility is to be built, and
<br />WHEREAS, Koszegi Leather and Vinyl Products, Inc. seeks approximately $300,000.00 from an issue
<br />of revenue bonds of the Economic Development Commission of the City of South Bend to be signed
<br />by its Mayor and by its City Clerk and further desires to enter into a lease not to exceed 25
<br />years duration to be known as a net net net lease sufficient to pay the principal and interest
<br />of these bonds and obtain title at the end of the lease, and
<br />WHEREAS, by virtue of the net net net lease, the Koszegi Leather and Vinyl Products, Inc.
<br />indicates its intention to pay all expenses of the operations, maintenance, insurance, property
<br />taxes, whatever of the facility,
<br />THEREFORE, be it resolved by the Common Council of the City of South Bend that the statement of
<br />public service on the part of the Economic Development Commission of the Area Plan Commission
<br />and the South Bend City School Corporation be accepted and approved, and
<br />THEREFORE, be it resolved that the South Bend City Common Council authorize the Economic Devel-
<br />opment Commission of the City of South Bend to proceed to make preliminary agreements with the
<br />proposed lessee, Koszegi Leather and Vinyl Products, Inc., in the nature of a conditional commit-
<br />ment to enter into a lease with Koszegi Leather and Vinyl Products, Inc., and
<br />THEREFORE, be it resolved that the Economic Development Commission of the City of South Bend
<br />shall, as soon as the new lease form is properly prepared, submit the same to the Clerk of the
<br />City of South Bend to be prepared by a member of the Common Council as a proposed ordinance
<br />for the acceptance of same and issuance of revenue bonds to cover the amount of money needed.
<br />/s/ Peter J. Nemeth
<br />President, South Bend City Common Council
<br />July 28, 1972 to
<br />Mr. Karl King, Chairman
<br />Economic and Development Commission
<br />116 South Michigan Street
<br />South Bend, Indiana 46601
<br />Dear Mr. King:
<br />I am writing to you in efforts that you may be of assistance to my corporation
<br />for the express purposes of an Industrial Revenue Bond issued for the following
<br />purposes:
<br />1. Purchase property containing 60,000 square feet - land space.
<br />Price approximately $50- 60,000.00.
<br />2. In addition to my present facility 100 x 100 with two stories contained
<br />in all 20,000 square feet.
<br />3. The retirement of approximately $100,000.00 of indebtedness of my present
<br />facility which contains 27,000 square feet and 60,000 square feet of land
<br />approximately.
<br />Total cost of the above project would be as follows:
<br />Approximately $50- 60,000.00 for the purchase of additional land. Approximately
<br />$120,000.00 for the 20,000 square feet addition, and, of course, $100,000.00 of
<br />debt retirement owed on the present facility. The approximate book value per my
<br />company records for our present land, buildings and machinery and equipment is as
<br />follows:
<br />Land $13,087.00
<br />Buildings $183,029.00
<br />Machinery and Equipment $86,034.00
<br />In addition to the request for the monies under the Bond Issue for the building,,
<br />we are also requesting the balance of approximately $20- 40,000 for the purchase
<br />of new machinery and equipment used in the day to day process in my business.
<br />At the present time our corporation employs approximately seventy people in the
<br />South Bend, St. Joseph County area and with the future expansion will employ
<br />'an additional fifty, bringing total employment at our corporation to one hundred
<br />and twenty people.
<br />Attached you will find our corporate year =end statement which has been prepared
<br />by John Dobson & Company, and as you can see, we have had another growth expansion
<br />year with good profits to the corporation.
<br />I sincerely feel that this coming venture will be both gratifying for South Bend
<br />and St, Joseph County and to the future growth of our corporation, and will inure
<br />to the benefit of all citizens of South Bend.
<br />Respectfully submitted
<br />Endre Koszegi, President
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